If the asset is sold before the end of the 5-year period, can the 0-percent gain feature be preserved for the subsequent holder?
A subsequent purchaser of an asset that otherwise qualifies for 0-percent capital gain treatment is eligible for the incentive. The original purchaser would not be able to exclude any gain attributable to the period the asset was held, however, because the asset was not held by that original purchaser for the minimum period.
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